What to eye post Brexit
Investors should review their UK and European investments and possibly consider emerging markets and gold as an investment opportunity, according to industry experts.
BetaShares chief economist, David Bassanese, said as Brexit raised risks with UK and European investments, emerging markets could gain some attractiveness on a relative basis.
However, in light of Brexit, Bassanese said he preferred defensive high income investment opportunities in developed markets.
"Gold is likely to be the major beneficiary of coordinated monetary easing," he said.
Montgomery Investment Management founder, Roger Montgomery, warned that professional managed pension and super funds were investing in bonds with very low returns for extremely long periods.
Montgomery said events such as Brexit had caused a stampede toward security, and that had driven bond prices even higher and yields much lower.
"Investors are laying the groundwork for the next collapse in the value of their retirement savings," Montgomery warned.
Baby boomers were chasing high yielding blue-chip shares on an expensive Australian stock market, and low yielding bonds, he said.
"[They] are likely to suffer another destructive setback to their wealth and purchasing power before their days are up," Montgomery said.
But that may be one, two or three years away, Montgomery said.
Recommended for you
The FSC has announced 15 proposals ahead of the federal election which it hopes will increase the competitiveness of Australia’s financial services sector, including six with a focus on fund managers.
Regal Funds Management saw total net inflows of $2.1 billion during 2024, with flows primarily going into long/short equities and multistrategy vehicles.
There is growing divergence between institutional and retail investors in their enthusiasm towards equities, according to Bank of America, with retail sentiment being “unusually low” at the start of 2025.
A new co-portfolio manager has joined Tyndall Asset Management to help strengthen the performance of its small companies portfolio.
